South Korean Crypto Exchanges Struggle with Halved Revenue Amid Market Shifts

South Korean crypto exchanges Upbit and Bithumb have reported nearly identical declines in revenue for the first half of 2026, according to their semi-annual financial reports. Dunamu, the parent company of Upbit, saw a year-on-year decrease of 49.1% in consolidated operating revenue, while Bithumb's revenue dropped by 48.7%. Both companies rely heavily on trading fees for revenue, but Dunamu controlled costs better and remained profitable, whereas Bithumb suffered a net loss of 108.7 billion KRW.

The decline in revenue is directly related to the sharp decrease in South Korea's crypto trading volume, which fell by 49.5% year-on-year in the second quarter. The combined trading volume of five licensed KRW exchanges was approximately $146.4 billion. Retail funds shifted from cryptocurrency to AI and semiconductor concept stocks, which became new favorites among retail investors due to expectations of AI memory chip demand.

Both companies are advancing listing plans, with Dunamu planning a share swap cooperation with Naver Financial to prepare for an IPO on the Korea Exchange (KRX). Bithumb has formulated a three-stage IPO roadmap, targeting a listing in 2028. However, Bithumb's listing valuation will face huge pressure due to its current financial performance and net loss.